Company Spurns Offer From Wet Seal

County Seat Inc. of Dallas said a proposal by Irvine retailer Wet Seal Inc. to buy 508 of County Seat’s casual clothing stores is “grossly inadequate” and it will proceed with its bankruptcy reorganization.

Sam Forman, president and chief executive of the Dallas-based retail chain, said County Seat’s creditors share its view of the proposal. County Seat declined to disclose details of Wet Seal’s offer.

County Seat filed for bankruptcy protection in October, saying it planned to shut 200 of its 740 stores, which mainly are in shopping malls. Wet Seal said it would convert the stores it wanted to buy into Wet Seal or Contempo Casuals stores.

The purchase would have increased Wet Seal’s young women’s clothing stores to about 900. It also would have given Wet Seal an expanded base in malls. Wet Seal is eyeing another acquisition after its successful purchase of Contempo from Nieman Marcus Group Inc. in 1995.